Editorial Commentary

Can We Finally Lose Detroit?

Bankruptcy is only the first step in reclaiming an urban wasteland

Wondering why Detroit filed for bankruptcy is like wondering why the dinosaurs went extinct. Like the ancient reptiles, the people of Detroit have been unable to adapt to changed reality. The failure was not of one species of dinosaurs or class of people, but of most members of the old Detroit economic ecosystem.

Capitalists failed. The lenders who allowed Detroit to borrow for operations were suppliers of the world's most powerful drug, free money. Some clever bond buyers forced the city to give security, such as first...